Tenant jailed after conning kind-hearted landlord out of £212,000

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A kind-hearted landlord has been left destitute and suicidal after being tricked out of £212,000 by one of his tenants.

Cruel conman Derek Conway (main pic, inset) preyed on Eugene Schofield’s good nature by pretending he was terminally ill but that he had a £100,000 windfall waiting to be paid, Lancashire Live reports.

Schofield owned five buy-to-let properties in Blackpool which he rented out to people who were struggling. Preston Crown Court heard that he did not take deposits or check references as he “took people as he found them”.

Conway had told his landlord that his medical treatment would cost £103,000 and asked Schofield to lend him the difference.

Gambled

He later claimed he had paid the money to a clinic, but the doctor had disappeared with his payment and the clinic would no longer treat him. However, Conway had gambled the money away.

Between 2013 and 2019, Conway left his landlord unable to afford to feed himself or pay his bills and owing £20,000 to HMRC. He sold all his properties and re-mortgaged his own home to help his tenant out, losing £1,000 a week rental income.

In a victim impact statement, the landlord told the court: “I never took a bond or references as my opinion was that if people are renting, they need some kind of financial assistance.

“If my tenants were ever struggling with rent, I would always try to help out. I would give them a loan for as long as they needed it.”

Schofield said he became so depressed he attempted to take his own life and was no longer sleeping or able to support himself.

Conway, of no fixed address, was jailed for six years and nine months in a case the judge labelled, “A long term, cruel deception of a vulnerable man.”

Pics: Getty and Lancashire Police

Read more about people who con landlords.

View Full Article: Tenant jailed after conning kind-hearted landlord out of £212,000

Landlords worried over plans to bring in compulsory ombudsman membership

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Nearly 60% of landlords are either against or not convinced by the Government’s plans to bring in mandatory membership of an ombudsman for all landlords in England, it has been revealed.

The proposals, which are within the Renters (Reform) Bill passing through parliament, aim to ensure disputes between private renters and landlords are settled impartially, quickly, at a low cost and without going to court.

Mortgage broker Landbay canvassed 1,100 landlords and found that while almost half of them were unsure whether the ombudsman was a good idea and would like more information about it, 10% were against it and 42% agreed the proposal was a good idea.

Impartial

Those landlords who were supportive of an ombudsman were keen to point out that it must be impartial and offer timely resolution of disputes rather than lengthy court cases.

But those against the service said they thought it would ‘always side with the tenant and it was just a money-making scheme’ and that if it were run by Government would just be ‘another layer of bureaucracy’.

Indications are that, like the ombudsman schemes that help letting agents and their customers resolve disputes, it would be run by a third party outside Whitehall.

Paul Brett (pictured), MD of intermediaries at Landbay commented: “Our survey found uncertainty around the idea of a Private Rented Sector ombudsman.

“On the positive side, it would be good if disputes could be quickly resolved without having to go to court, but there is some scepticism as to how quick this would be. It appears that more information is needed before such as scheme is created.”

View Full Article: Landlords worried over plans to bring in compulsory ombudsman membership

Strategies for Maintaining a Steady Property Income Stream

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Property investment is an attractive avenue for building wealth and generating passive income. However, success in property requires more than just purchasing properties; it necessitates effective cash flow management. Maintaining a steady income stream is crucial to ensure your property investment endeavors remain profitable and sustainable.

View Full Article: Strategies for Maintaining a Steady Property Income Stream

Carer/partner won’t leave after tenant died?

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Hi, We have a tenant who was served a section 21 back in April which expired on 26 June 2023. They were in arrears of over £6k. Due to the tenants’ health issues we were regularly in contact with their partner who was also the carer

View Full Article: Carer/partner won’t leave after tenant died?

Debate rages over huge arrangement fees for landlord mortgages

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A mortgage expert has advised landlords not to be put off by high arrangement fees on BTL mortgages, but some landlords and brokers have accussed lenders of profiteering.

With some fees as much as 7% of the mortgage amount, lenders have been accused of taking advantage of a precarious mortage market, but Lee Grandin of Landlord Mortgages says this simply isn’t true.

“The only reason this has come about is that the regulations are more stringent now for when lenders are working out cover, as interest rates have risen,” he tells LandlordZONE. “Those landlords coming off fixed rates can’t go onto a fixed rate with a new lender.”

Brokers have explained that higher arrangement fees – introduced after last year’s mini-Budget – are the only instrument lenders have to ensure borrowing can still continue for the benefit of the landlord, but also to satisfy their stress tests with the regulator.

Affordability

In short, lenders are acting out of necessity to enable landlords to achieve affordability.

Grandin adds: “Five years ago, fixed rates were a lot lower and they may have lent on a fixed rate of 4% for five years. That’s the only reason lenders are charging a fee – but with a 7% arrangement fee, the pay rate comes down significantly.”

He adds that the mortgage environment is set to evolve as lenders still need to get rid of money. “Margins will come down over the next few years and there will be a move towards tracker mortgages with much lower margins,” says Grandin.

“Lenders weren’t offering any lifetime trackers after the credit crunch like they used to, but these are starting to emerge again.”

But portfolio landlord, Kundan Bhaduri, director of London-based The Kushman Group, has accused lenders of profiteering and urged the Government to step in: “While some argue that these fees are a strategic way to maintain lower interest rates and enhance affordability, it is becoming increasingly evident that they border on profiteering, as they are causing extreme financial distress to landlords.

“Lenders used to charge around £995 to 2% in arrangement fees, but they’re now not far off £50,000 in some cases.”

Read more about mortgage arrangement fees on the LandlordZONE Forum.

View Full Article: Debate rages over huge arrangement fees for landlord mortgages